The Mint: 2011-10-30

Wednesday, November 2, 2011

True Capitalism: Superior to and incompatible with the Nation State

11/2/2011 Portland, Oregon - Pop in your mints…

Recently we have submitted for your consideration, fellow taxpayer, that Anarchy is man’s reality. It is not a choice, it is an ultimate given, it simply is. All understanding of the current political and social structures is greatly facilitated by one’s acceptance of this simple fact.

In fact, one’s ability to act and react to the changes in the current political and social structures depends upon accepting and embracing Anarchy as the basis for reality and learning to operate in the True Capitalistic system which organically emerges as men learn that mutual trust and cooperation are in their rightly understood self interests, and that he who is to lead must truly become the servant of all.

To truly embrace this, for, as we have established, it useless to reject it, we must first understand something about the nature of mankind. First and foremost, man, left to his own devices, is completely devoid of the ability to do the right thing. He doesn’t have it in him. He is lazy, self-serving, and completely evil. He needs God and his fellow man to be able to do anything productive, altruistic, or remotely good. A full defense of this statement is a subject for another day (although the evidence is all around us), we mention it here only to underscore the need for a framework within which mankind can avoid both self and mutual destruction.

The only reliable framework which has emerged out of Anarchy not only addresses the problem of human nature but also serves to turn man’s weaknesses into strengths. This framework is True Capitalism. By allowing market forces to work with as little hindrance as possible, mankind can insulate itself from descending into chaos and catastrophe. As we have stated previously:

Out of Anarchy, the Truly Capitalistic System would ORGANICALLY emerge, and with it a new dawn for humanity, built on mutual interest and almost endless capital formation which will engender a spontaneous and dynamic social order, and a society without borders that would enjoy freedom and prosperity that we cannot even imagine under current conditions.

The greatest virtue of True Capitalism is the speed with which it corrects errors in judgment. Bad idea, malinvestment, frauds, and even violent and property crime are quickly dealt with.

Why? The reason is that the consequences fall squarely on those whom have made the errors, and do not weigh on those who have not. Conversely, the benefits of good decisions are enjoyed by those who have made them. The education of man as to what is advisable and what is not is ongoing.

Market Anarchism

But who sets the rules? By definition, there are no rules apart from what has been mutually agreed upon by consenting parties. That said, it is easy to imagine how quickly a myriad of rules may spring forth in True Capitalism. The key difference between these rules and those declared by a governmental decree is that compliance with the agreed upon rules in True Capitalism is voluntary, making compliance likely. For to violate the rules of an agreement is to forfeit the advantage imagined to be gained by entering into the agreement.

Even the primordial requirements of the right to life and property would organically be honored, for they are primordial to all humans, whether they readily admit it or not. Being primordial, securing of the life and property of others would be amongst the first series of contracts that any person would enter into, whether directly or indirectly.

Of course, mankind is completely subject to natural (or divine, as one prefers) law, True Capitalism simply allows the fullest and most complete expression of the operations of natural law to operate in the dealings of men.

Did God not warn the people not to desire a king?

To fight True Capitalism, mankind’s least flawed response to his Anarchic surroundings, is to cause or submit to chaos and misery. Yet every nation on the planet is devoted to some degree in the fight against True capitalism. Why? Simply because the nation state, under the guise of being the most perfect expression of man’s good intentions, today occupies the throne which rightly belongs to True Capitalism.

The two are the antithesis of one another. A nation state regulates by edict, True Capitalism regulates by example. A nation state is rigid, where True Capitalism is pliable. Hence, where True Capitalism will bend but never break, the nation state is repeatedly smashed to pieces when faced with change.

Moving to a less philosophical level, how can we be sure that Anarchy is the basis of man’s current existence? Because the institutions which supposedly offer the best option to embracing Anarchy are beginning to succumb to the punishments they have built up in their losing fight against True Capitalism.

Yes, Anarchy is now trumping the nation state. We urge you to watch closely the phenomenon which is currently playing out in Greece, for it is highly likely to play out in nearly every Western Democracy before Anarchy comes in to give its people a bear hug.

Thankfully, natural (or divine) law will not change. One’s time would be better spent understanding the immutable truths of natural law, for they will prevail. What is natural law? We’ll give you hint. It involves supply and demand, and loving one’s neighbor as himself.

Believe.

Stay tuned and Trust Jesus.

Stay Fresh!

David Mint

Email: davidminteconomics@gmail.com

P.S. For more ideas and commentary please check out The Mint at http://www.davidmint.com/

Key Indicators for November 2, 2011

Copper Price per Lb: $3.58
Oil Price per Barrel: $92.81

Corn Price per Bushel: $6.45
10 Yr US Treasury Bond: 2.01%
FED Target Rate: 0.08% ON AUTOPILOT, THE FED IS DEAD!

Gold Price Per Ounce: $1,737 PERMANENT UNCERTAINTY

MINT Perceived Target Rate*: 2.00%
Unemployment Rate: 9.1%
Inflation Rate (CPI): 0.3%
Dow Jones Industrial Average: 11,836

M1 Monetary Base: $2,071,500,000,000 RED ALERT!!!
M2 Monetary Base: $9,607,200,000,000 YIKES UP $1 Trillion in one year!!!!!!!

Tuesday, November 1, 2011

Greece, Inc., Anarchy in action

11/1/2011 Portland, Oregon - Pop in your mints…

You can’t make this stuff up. In case you are unaware, today, Greek Prime Minister George Papandreou made a surprise call for a referendum on the most next round of bailout funding that its big Euro brothers, Germany and France, spent so much time and political capital to arrange. From Reuters:

The Greek government faced possible collapse on Tuesday as ruling party lawmakers demanded Prime Minister George Papandreou resign for throwing the nation's euro membership into jeopardy with a shock call for a referendum.

Caught unawares by his high-stakes gamble, the leaders of France and Germany summoned Papandreou to crisis talks in Cannes on Wednesday to push for a quick implementation of Greece's new bailout deal ahead of a summit of the G20 major world economies.

Apparently, it was a surprise even to those in Athens:

Papandreou did not even inform Finance Minister Evangelos Venizelos he was going to announce the referendum on the latest EU aid deal, a government official told Reuters.

"They must be crazy... this is no way to run a country," said a senior executive of one of Greece's biggest firms, speaking on condition of anonymity.

Yes, Anarchy is now trumping the nation state. Let us examine the phenomenon which is currently playing out in Greece, for it is highly likely to play out in nearly every Western Democracy before Anarchy comes in to give its people a bear hug.

Allow us to present this development in terms of Greece as a Corporation to make clear the absurdity of the present situation.

George Papandreou Jr - CEO Greece, Inc.

Greece Inc., the security and welfare agency, is one of the oldest in the Western world. It is currently running an unbelievable operating deficit and is awaiting 8 Billion Euros payable in mid November under a financing deal that its largest creditors have essentially negotiated for it.

Mr. Papandreou, the CEO of Greece, Inc., along with Greece Inc.’s creditors, has been negotiating a new, complex financial deal which will allow the bankrupt corporation to continue to fund its security and welfare activities, albeit at reduced levels. Without this deal, Greece, Inc. will run out of cash in January 2012.

Mr. Papandreou has been slashing the preferred dividends (welfare payments) and salaries of the Greece, Inc.’s shareholders and employees in order to comply with the terms of the current financing deal.

Looking ahead to January 2012, Greece Inc.’s lenders have “negotiated” yet another deal for it to be able to fund its operations past the corporation’s next D-Day. Naturally, the deal includes a lot more “shared pain” in the form of further reductions to employee salaries and preferred dividends. Naturally, this comes as unwelcome news to the employees and shareholders.

Sensing that he is losing control of the company, Mr. Papandreou suddenly feels the need to get “buy in” for the new deal from all affected parties. Today, without consulting its creditors, Mr. Papandreou announced that he is presenting the complex financial deal for the formal approval of his enterprise’s (Greece) captive shareholders.

To make matters more interesting, he is scheduling the approval vote (aka the referendum) to occur at about the same time that Greece, Inc. is scheduled to run out of cash in January of 2012. This may be the ultimate in financial brinksmanship.

Naturally, the potential funders (Germany, France, China, etal) are taken aback at the sudden “need” to gain shareholder approval. This is something that is, while perfectly legal, completely unexpected and has introduced yet one more variable in what is already a complex deal.

Naturally, the introduction of this new variable has sparked anyone who is currently owed money by Greece, Inc. at a future date now trying to sell Greek bonds for whatever they can get for them, virtually eliminating the market for Greek debt and, in the process, making the creditors who are ready to sign the new deal with Greece, Inc. look extremely foolish.

Beyond foolish, it naturally calls into question the motives, decision making ability, and ultimately the creditworthiness of said creditors Germany, Inc., France, Inc., and China, Inc. and their banking subsidiaries.

Crony Capitalism, there is nothing natural about it.